Postcomm sets compensation rates for delayed mail

Postcomm sets compensation rates for delayed
mail
Following consultation, Postcomm today set out the details of how
Royal Mail should compensate its customers if their letters and packets
are delayed in the post.
Postcomm’s determination provides separate compensation schemes
for businesses that use Royal Mail for bulk mailings, and for private
customers. The bulk mail compensation scheme will come into effect
for this financial year, linked to Royal Mail’s quality of service from April
2003. Compensation for private customers will operate from 1 January
2004.
Royal Mail today announced an interim compensation scheme which
mirrors much of Postcomm’s determination. The Royal Mail scheme for
domestic users takes effect from today.
Graham Corbett, chairman of Postcomm said:
“I hope this compensation scheme concentrates the minds of Royal
Mail management and staff on the importance of meeting their
delivery targets. Last week we proposed a financial penalty of £7.5
million on Royal Mail for its failure to achieve last year’s quality of
service targets on two first-class business services. Under these new rules
if Royal Mail again misses its bulk mail targets by a significant amount it
will be liable to pay substantial compensation to its customers.”
The main components of the Postcomm’s compensation arrangements
are:
Bulk mail
Business customers who send out bulk mailings will be compensated at
the rate of 1% of their bills for each 1% that Royal Mail fails to meet
national targets. The minimum payment will be at a shortfall of 1% and
will increase by 0.1% increments up to a maximum of 5%.
Domestic users
A separate scheme is proposed for domestic users who will be able to
make a claim for delays to first or second class mail, Special Delivery
and standard parcels. For basic telephone claims, compensation will
be set at 12 first-class stamps for mail that is delayed for three working
days or more beyond the due delivery date*. Where there is a written
claim providing clear evidence, including the envelope, compensation
will be £5. This is doubled to £10 if the delay is excessive (10 working
days or more after the due date of delivery) and clear evidence is
provided.
MORE
Special Delivery
For Royal Mail’s Special Delivery service, where the target for signed-for
delivery is the next day, in the event of a delay there will be a payment
of £5 immediately after the due date and £10 where the delay is
excessive. In addition to the payment of compensation, postage costs
will be refunded.
Notes for editors
People making telephone claims will be asked to provide basic
evidence by answering questions from Royal Mail. These include details
of the sender and addressee, and information about the date and
place of posting, the date of delivery, the type of stamp and cost of
postage. Royal Mail has the right to refuse claims it considers are not
valid. Customers refused compensation can appeal.
*The due delivery date for first class post is the following working day,
and for second class post, three working days.
Postcomm’s determination, A Compensation Scheme for Delays by
Royal Mail – Determination by Postcomm, is published on Postcomm’s
website www.postcomm.gov.uk. Printed copies will shortly be available
from Postcomm at 6 Hercules Road, London SE1 7DB.
Postcomm – the Postal Services Commission – is an independent regulator. It
has been set up to further the interests of users of postal services. Postcomm’s
main tasks are to:
• Seek to ensure a universal postal service at an affordable uniform tariff
• Further the interests of users wherever appropriate through competition
• License postal operators
• Control Royal Mail’s prices and quality of service
• Give advice to government on the future of the post office network.
Postcomm’s policies are steered by a board of seven commissioners, headed
by the chairman, Graham Corbett CBE.
More information
Chris Webb T 020 7593 2114 M 07779 635881 [email protected].
Joseph Bonner T 020 7593 2116 M 07773 329902
[email protected].
Jonathan Rooper T 020 7766 1210 Pager 07693 352732
[email protected]